Abstract
This study has examined
the efficient management of production problems in manufacturing companies in
Enugu state. The selected companies were ANAMMCO, PRODA AND SUNRISE.The
research design used for this research work was descriptive research design.
The questionnaire was the instrument distributed to the participants which was
later retrieved. Frequencies, arithmetic means, standard deviations and statics
were used to analyze the data. The findings of the study, showed that
availability of raw material significantly enhance production. When the raw
materials are available at the needed time, it is easy for manufacturing firms
to meet production targets. However, another finding of this study is that
adequate financial base enhances production. Manufacturing firms cannot
function effectively or even produced goods without adequate capital. Based on
the findings of this study, the researcher recommends as follows; there is a
need to ensure that raw materials are available when needed. Thus, management
should give production a priority in the manufacturing firms by ensuring that
vitally needed raw materials are provided. Above all, management should
endeavor to keep abreast of government policies on importation, taxes, tariffs
which greatly influence production especially ANAMMCO, which relies partly on
foreign spare parts for production.
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Production can be defined as the process
by which good and services are created. It is a process by which a set of
desired inputs is converted into a set of desired output. Production includes
all activities wherein something of value is created.
It includes services such as those
provided by hospitals, universities, insurances etc. manufacturing, on the
other hand, refers to production of tangible goods such as books, automobiles
and food products.
In the evolution days, production was, in
a sense, almost an isolated function many companies. It jobs was, to take the
designer’s blue-print and produce a product. Whether the product was accepted
or not, there were barriers, in communication andcooperativeness between manufacturing
and other functions of the company. Since production entails employment of the
bulk of manpower, utilization of the physical assets and engagement of the bulk
of the financial resources; pressures in the organization great; failure to
deliver, an idle machine, a line of an unsafe process all demand attention in
order to attain the corporate objectives.
However, management scholars having
identified several problems in the production process for instance, low
capacity utilization, poor quality and inadequate personnel, have tried to
evolve an efficient production system that would attract profits at low cost
and thus enhance the survival and growth of the organization.
More importantly, management experts have
deduces that decisions and actions relating to production seriously affect the
success of a firm. Good judgment in location and layout of the production
facilities can produce cost savings and efficient operations. Effective
purchasing and control of materials minimize the chance of operation
interruptions. Careful production scheduling and quality help to assure that
customers will get on-time delivery and quality products.
Regrettably, despite all effort by
scholars aimed at evolving an efficient production system, many manufacturing
companies have persistently failed to pay attention to planning and control of
the production process which includes among others, quality, material and
inventory control etc. This has been responsible for the colossal decline in
factory profits with its attendant problems.
Industrialization is the only vehicle to
a great tomorrow, to security, to higher income and to a higher standard of
living. Industrialization changed Japan form fended aristocracy to a buoyant
economy.
Industrialization will change the face of
Africa, Asia then production will have to be provided with the attention,
motivation, and infrastructural facilities it desires.
This will enable production function
assume its role of stimulating our technological take-off and thereby create
enough wealth to improve the standard of living of present and future
generation of Nigerians.
The facts above underscores the need to
delve into problems encountered in production and thus put forward better ways
of managing the production process so as to enhance the overall growth of the
manufacturing industry.
1.2 STATEMENT
OF THE PROBLEM
Most manufacturing firms in Nigeria are
faced with declining profits due to focus on capital investment as a means to
reduce labor and consequently ignore the huge profits to be gained through
improved quality, reduced inventory and more timely introduction of new
products. In a desperate bid to make and meet the demand, many of such
companies are operating below their installed capacities. Some have retrenched
their staff while yet others have shut down production. Often times, some of
the problems have been attributed to; inability to procure vitally needed
machinery, raw materials and spare parts. Other includes low managerial skills
and inadequate infrastructure.
Some
of the man-made constraints to raw materials procurement include lack of
technical personnel to direct the manufacturing process. However, it has been
observed that most companies fail to pay attention to managing these problems
associated with production of goods. This has largely contributed to
inefficiency in production system, lack of growth and declining currently being
faced by most manufacturing firms.
1.3 OBJECTIVES OF THE STUDY.
1. To find out if the unavailability of raw
material affect production.
2. To ascertain to what extent the provision of
the infrastructure facilitate production.
3. To ascertain the extent adequate financial
base enhance production.
4. To verify how effective staff motivation
have significant impact on their performance.
1.4 RESEARCH
QUESTIONS
1. Has the unavailability of raw material
affect production?
2. To what extent has the provision of the
infrastructure facilitate production?
3. To what extent has adequate financial base
enhance production?
4. Does effective staff motivation have
significant impact on their performance?
1.5 SIGNIFICANCE OF THE STUDY.
The
study is significant in many ways. In the first instance, a review of the production
system and its design will provide valuable information on the problem inherent
in varied methods in production and thus reveal the appropriate way to plan
production activities in the manufacturing sector.
Furthermore, production management personnel,
organization specialists and others will be provided with additional knowledge
on ways of coping with the onerous difficulties in production aimed at
enhancing production efficiency and thus the overall growth of the
organization.
Above all, this work will also create
awareness for management scholars on the need to manage production since it
will offer helpful recommendation on the benefits likely to be achieved in
organizations that execute production activities properly.
1.6 SCOPE
/DELIMITATION OF THE STUDY.
The
manufacturing companies are categorized under Auto-industry, Ceramic company
and flour producing company.
The researcher out of the different
categories randomly selected one from each of the categories. The selected
companies are: “Anambra Motor Manufacturing Company”(ANAMMCO, Project
Development Institute(PRODA) and Sunrise Flour Mills Limited (Sunrise).
The scope of the study is restricted to
investigation production problems and exploring way by which the production
process could be better managed to enhance growth and efficiency in the
manufacturing industry.